Kerala to Move SC over Withheld Education Funds

In May 2025, the Kerala government decided to approach the Supreme Court against the Centre’s alleged withholding of Rs. 1,500 crore meant for the state’s education sector, citing non-compliance with the Centre’s PM SHRI scheme.

Kerala’s Education Minister announced that the state will legally challenge the Centre's decision to hold back Rs. 1,500 crore in central assistance meant for various education schemes.
The withheld funds are largely from the Samagra Shiksha Abhiyan (SSA), a centrally sponsored scheme that aims to ensure universal and quality education for children between the ages of 6 and 14.
The PM SHRI scheme, launched in 2022, seeks to upgrade over 14,500 existing schools across India into model institutions in line with the National Education Policy (NEP) 2020, with states contributing 40% of the expenditure.
As of now, 12,400 schools in 670 districts across India have joined the scheme, but states like Kerala, Tamil Nadu, and West Bengal have opted out by refusing to sign the implementation MoU.
Kerala has objected to the PM SHRI scheme on ideological grounds, arguing that it is rooted in NEP 2020, which they see as a move towards the saffronization of education and centralisation of control.